India

State banks are the most at risk.

As per Reserve Bank of India, the Indian banking system has gross stressed assets of 11.5% of total assets, as of March 2016. Amongst the various categories of banks, the percentage for public sector banks is, as expected, highest at 14.5%.

The classical central banker’s dilemma is how to address the growth versus inflation conflict. The prevailing orthodoxy has remained an independent monetary policy using base interest rates as the primary management tool.

Indian banks will need USD90bn in total additional capital to meet Basel III requirements.

Gross NPL ratio increased sharply to 7.6% in March.

On back of its roaring loan growth.

The amount of stressed assets is simply too high.

Raghuram Rajan will return to the academia.

Will it allow banks to cover up bad loans?

It will be used to avoid high write-downs.

It will progressively release INR750-800b in the system.

The long-term benefits far outweigh short-term challenges.

The RBI's insisted to recognise stressed sectors.

They’re struggling to produce quality loans.

ICICI Pru’s valuation is now INR325b.

Capital levels range from 6-10%.